GETTING ORGANIZED FOR MY BIG INVESTMENT PROJECT

In order to focus my attention on my 2 year portfolio building project, I spent the weekend getting organized at home.  Got caught up on all my yard work, cleaned and organized my apartment.  Had to get my old bedroom cleaned up and dried out for the painters.  My landlord finally got the roof fixed and they plan on repairing my apartment first.  I thought it would speed things up a bit, not to mention making things more comfortable for myself, to get everything ready so they can come in and get the job done as quickly as possible.

It's been quite an ordeal, dealing with the water leaks and mold for the past 6 months or so, but they're finally making some progress.  I've taken advantage of the time to decide what I could live without.  I figure I'll kill two birds with one stone.  I'll clear up room in my apartment and make some money by selling all the things I no longer want or need at my sister's next yard sale.  Whatever money I make from the sale I'll put to work in my investment plan.  Rather than having a lot of things collecting dust, I'll add shares of stocks to my investment account and collect dividends.

The restaurant where I work gave me a couple of Coca Cola clocks I intend to put in the sale.  I would have been happy making a few bucks, since they cost me nothing, but I've found out they're actually quite valuable.  If I sell them at the rummage sale I won't make as much as selling them on Ebay, but I should still do all right.  Whatever I make off them is pure profit. 

As soon as they repaint my old bedroom, I plan on making it my new home office.  I'm keep my bedroom on the north side of the building where it's more shaded during the hot summer months.  I have most of the furnishings, so I just need to pick up a writing desk and another filing cabinet.  I know a place near here where I should be able to get a good deal on used office furniture and should be able to get any office supplies I need with register rewards from Walgreens.  

It will be nice to get everything back to normal and get busy building my new investment portfolio and pursuing some of my other small business ideas.  2012 is beginning to look like a good year for me, we'll see how it goes. 

WEEK IN REVIEW

We had a nice week overall although stocks ended lower on Friday on European financial woes.  As for my own investments, picked up more shares of BMY and T through dividend re investments.  Also made an extra cash deposit to my taxable account from money earned through my part time carpet cleaning business.  I've earned enough to pay for the equipment, so I'm investing half of my earnings in dividend stocks to create additional monthly cash flow.

Did my grocery shopping after work today.  Picked up a everything I needed for the week and saved a little more than 30% off with coupons and sale match ups.  Looking forward to my weekly Walgreens trip on Sunday for more great deals!

WEEK IN REVIEW...

The stock market ended the week with one of the best gains we've seen in the last two years, most likely due to Greece adopting austerity measures, making the country less likely to default.  It will be interesting to see if the rally holds up as the jobs report and other economic indicators are released after the holiday weekend.  While I'm expecting a drop in July, if that doesn't happen I'll be making some adjustments to my investment strategy.  Right now I'm taking a wait and see approach.

WEEK IN REVIEW

We ended the week down a bit in the stock market, but the bright side of that, for me anyway, is my order for Chimera doesn't go through until Tuesday, so I'll be getting more shares at a lower price.  Which also means that I'll be earning a higher yield on more shares of stock, so it's making the buy a little less risky. 

Got a little over a 5% raise from work, nothing to get too excited about but it will add to the amount of money I have to invest going forward.  Starting next month I'll be adding the extra cash to my savings and investment accounts, along with the money I'm saving from using more coupons and rebates on purchases.  So that should help boost the balances in my accounts by the end of the year. 

Got some great news yesterday from the attendant where I buy gas for my car.  He told me the price of gas should be dropping by 26 cents a gallon within the next couple of days, so I'm waiting to fill up.  A drop of 26 cents a gallon should save me considerably on fuel costs.  With the money I'll be saving on gas for my car, I should be able to pay the lower electric bills for my apartment.  This time of year, the electric bills are usually a lot less since I've stopped using the heat and haven't yet had to turn on air conditioning.  My current bill is only $25, only 1/4th the $100 that I normally budget for utilities.

IT'S MUCH HARDER TO INVEST A LITTLE THAN A LOT

When deciding on a new stock investment, I find it more difficult to invest a small amount of money, than investing larger amounts.  Well duh, you might say, but what I really mean is, I spend a lot more time evaluating stocks before making a final investment choice, because I'm more aware of the need to get the most bang for the buck. 

For instance, my quarterly IRA investment is coming up in April and it was a tough choice deciding where to put my money to work.  I finally narrowed my choices down to two stocks:  Spectra Energy Corp (SE:NYSE) or Abbott Laboratories (ABT:NYSE).  While I believe both stocks are good sound investments, I could only choose one for the amount of money I have to invest in my IRA account.  Both have great financials and good business models and while Abbott is a pharmaceutical company, they are not facing any major near term patent expiration like many of their rivals.  Spectra is involved in natural gas distribution, but a great deal of their profit comes from their toll-bridge like storage and pipeline operations.  Both carry similar dividend payouts of around 4%.  So it was hard to choose one or the other.

Since I had to make a decision, I finally went with Abbott Labs due to their slightly higher yield and their lower price to earnings ratio.  I also liked the fact that they have a great deal of cash on hand and a payout ratio of 58% compared to SE's 62%, leaving them more room for future dividend increases.  I have put in the order to purchase ABT for my IRA, but decided to buy shares of SE for my regular taxable account.  I'll have to wait until I collect enough dividends to purchase the SE shares, but I think they'll be a great addition to my portfolio in the long run.

I sure miss the good old days, before the "Great Recession", when my problem was having more cash and not being able to find enough good investments. 

GREAT VACATION AT PORT ELSEWHERE

Just got back from a relaxing week at Port Elsewhere at the Lake of the Ozarks.  I usually go down each February and meet up with friends for a weeks stay at the lake.  This time of year it's pretty deserted, so we have the condos mostly to ourselves.  The indoor pool, sauna and hot tub are great, but I think I like the peace and quiet most of all.  We usually hit the Outlet Mall, but sadly it's suffered the loss of several great stores and is no longer the best shopping experience.  Didn't buy anything this trip.

While it may seem like an extravagance to be staying at a condo at the lake when I'm trying to rebuild my stock portfolio after recent medical expenses, it really wasn't.  Some friends of mine have a time share there and I stayed with them, so my only real cost was gas money for the trip and food during my stay.  All of which came in at a little under $100.  So for a 5 day vacation, I think it was a real bargain and am glad I took advantage of it since it's not likely I'll be able to take another vacation this year.   

We had a great time catching up, playing cards and Monopoly.  Watched some great movies, had some good meals together and enjoyed our break from the everyday grind.  Enjoyed my vacation, but was glad to get home and back to work.

Finished my Federal and State tax returns the day after I got home.  I actually get small refunds this year, so I'm pretty happy about that.  Already have plans to invest the money in a good dividend stock, keep the money moving and making more.  No major moves planned for my investment accounts in the near future.  Am looking for a pullback in the market this summer and will be building my cash position to pick up some bargains when and if this occurs.

ANOTHER CHECK FROM SENDEARNINGS!!!

Just earned another check from SendEarnings (see banner ad this page).  What a great deal!  This check is for $42 and some change.  Not a lot, but I'll be transferring it from the bank to my money market account and will use it to purchase a few shares of dividend paying stock.  Keep the money moving and growing :0)

Also been doing some carpet cleaning jobs on the side with my new carpet machine.  I've earned enough to reimburse me for 1/6th of the purchase price of the machine.  In addition I have three other carpet jobs lined up, whenever I get time to do them.  At this rate it won't take long to earn back the entire purchase price and I can start using the money to retire what little debt I have left and build my investment account even more.

Speaking of investments, I'm looking at the current downturn in the market as a buying opportunity.  Looking to add additional shares to some of my quality stock holdings.  Have reduced investment costs to my IRA by changing my investment schedule from monthly to quarterly.  Instead of paying a commission each month, I'm only paying 4 times per year, reducing my commission expenses from $48 to $16.  Would rather have the money go towards purchasing more shares than fattening the brokers.

Stock Market Takes a Break

Stocks opened lower today and are expected to level off for the next 1 or 2 months. Bob Parker of Credit Suisse says to look for the bull market to return by August. (See his comment and link to video interview at:

http://www.cnbc.com/id/31168544


Frankly I'm kind of glad for a break in the run we've been having. Gives me time to pick up more stock at bargain prices. I've taken some profits lately and am looking to position myself for the next leg of the bull market. Technically we are still in a bear market, but there are always bullish periods within bear markets. Since the economy is not expected to fully recover from recession until the final half of 2010, it's likely that there will be volatility and a continued bear market until then. Gives forward thinkers plenty of time to position themselves for a true bull market at the end of 2010 or beginning of 2011. In the mean time, why not take advantage of the current market by buying on the dips and selling on the highs.